USD/JPY strength has stalled for now exactly below the 135.20 highs of 2002. But weakness stays seen as corrective ahead of a sustained break higher, with scope for 150 over the longer-term, analysts at Credit Suisse report.

Key 135.20 high of 2002 to cap in the short-term 

“We look for the 135.02/135.20 highs of 2002 to cap at first for a fresh phase of consolidation. However, with a multi-year ‘secular’ base completed earlier this year, we ultimately expect 135.20 to be decisively cleared in due course, with resistance then seen next at 135.85/87, ahead of 136.81/84 and then 137.21.” 

“Our ultimate objective stays seen in the 147.62/153.01 zone.” 

“Near-term support at 133.38/20 is now increasingly important, as a break below here can see a pullback to 132.62, then 132.34 and likely gap and 13-day exponential moving average support at 131.87/62, but with fresh buyers expected here if reached.”